I’ve heard the term bandied around for a while, but today I was in a break out room with someone who mentioned that they were doing this for companies. Apparently it first started in the USA in 2006 and headed this side of the pond in 2015 when they started certifying companies in the UK.
The rationale stems from the desire to put “Purpose” alongside profit, making companies start to look at activities such as social and environmental performance and amending their articles of association if so needed.
I decided to let AI do the research on this as it’s an area I am unfamiliar with so these are the apparent benefits:
. Enhanced Brand Trust and Reputation
- Consumer Trust: The B Corp certification signals to consumers that a company is committed to high standards of social and environmental responsibility. This can build trust, especially with consumers who prefer to support ethical, sustainable brands.
- Differentiation: B Corps stand out in the market, especially as more consumers, employees, and investors seek out businesses that prioritize social and environmental impact. Being a B Corp can be a strong differentiator in competitive industries.
2. Attracting and Retaining Talent
- Employee Engagement: Many people want to work for companies with a purpose beyond profit. A B Corp certification helps attract employees who are aligned with the company’s values, leading to greater engagement and job satisfaction.
- Retention: Employees are often more loyal to purpose-driven companies. Knowing their work contributes to a positive impact can increase retention, morale, and productivity.
3. Access to a Supportive Community
- B Corp Network: B Corps belong to a global community of like-minded businesses committed to improving social and environmental standards. This network offers collaboration opportunities, knowledge sharing, and resources to help each other grow and scale impact.
- Collaborations and Partnerships: Being part of the B Corp community can open up partnerships with other certified businesses, leading to mutually beneficial opportunities and alignment on shared values.
4. Attracting Ethical Investors
- Impact Investing: Investors increasingly seek companies with high environmental, social, and governance (ESG) standards. B Corp certification can make companies more attractive to ethical investors who prioritize purpose as well as profit.
- Funding Opportunities: Some funds and grants specifically target B Corps or companies that meet rigorous ESG standards, providing potential financial support for growth and development.
5. Improved Credibility and Accountability
- Transparency and Accountability: B Corps must maintain transparency and uphold high standards, which can enhance credibility among customers, suppliers, and partners. The certification requires regular assessments, keeping the business accountable to its values and long-term goals.
- Reputation for Integrity: Because B Corps are required to meet strict standards across their operations, they are often viewed as ethical and reputable companies. This can make stakeholders more confident in the company’s commitment to sustainable practices.
6. Long-Term Profitability and Risk Management
- Sustainable Growth: B Corps typically focus on long-term sustainability rather than short-term profits. This can lead to more resilient and sustainable growth, as purpose-driven companies tend to be better at managing resources and engaging in ethical practices.
- Reduced Risks: Focusing on environmental and social impact can reduce risks associated with unethical practices, regulatory non-compliance, and reputational damage. This approach can improve a company’s resilience in an increasingly socially conscious business landscape.
7. Positive Impact on Communities and the Environment
- Purpose-Driven Mission: B Corps have a framework to address social and environmental issues, allowing them to create positive, measurable impacts on their communities, the environment, and society at large.
- Environmental and Social Commitments: B Corps often engage in sustainable practices, support fair labor practices, and reinvest in their communities, which contributes to a positive impact beyond the bottom line.
I asked the person speaking what the costs were for obtaining B Corp Certification, but I couldn’t find the link he said would be posting in the group chat; the other thing I wanted to know was how companies were going to be monitored on an ongoing basis to make sure that they continued to perform in accordance with their obligations as a B Corp and he said there was a review every 3 years.
Three years is a long time IMO, especially when you’re doing having to adopt new ways of thinking/doing. Even appointing someone as the person responsible is no guarantee that a company will be able to perform if this person is not engaging with others or, worse still not getting the support from the top. We all know companies that love to get those awards and then everything reverts to how it was…
It’s a shame that getting certification is now becoming a necessity for things that we should be looking to do automatically because we care.
So would seeing that a company is a B Corp make you any more likely to do business with them ?
